Buckeye Partners, L.P. (NYSE:BPL)
Q1 2014 Earnings Conference Call
May 2, 2014 11:00 am ET
Kevin Goodwin - VP & Treasurer
Clark Smith - President & CEO
Keith St. Clair - EVP & CFO
Bob Malecky - President, Domestic Pipes & Terminals
Khalid Muslih - President, Global Marine Terminals
Pat Pelton - VP & Controller
Todd Russo - VP & General Counsel
Steve Sherowski - Goldman Sachs
Gabe Moreen - Bank of America-Merrill Lynch
Good day, ladies and gentlemen, and welcome to the Buckeye Partners 2014 First Quarter Financial Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. (Operator Instructions). As a reminder, this call is being recorded.
I'd now like to introduce your host for today's conference, Mr. Kevin Goodwin, Vice President and Treasurer. Sir, you may begin.
Thank you, Crystal. Good morning, everyone, and welcome to the Buckeye Partners first quarter 2014 conference call. The agenda for our call this morning is as follows: Clark Smith, our President and Chief Executive Officer will first discuss some important highlight for Buckeye this quarter. Then, Keith St. Clair, our Executive Vice President and Chief Financial Officer, will review our financial results in further detail.
Also on the call today are Bob Malecky, President of Domestic Pipes and Terminals; Khalid Muslih, President of Global Marine Terminals; Pat Pelton, Vice President and Controller; and Todd Russo, Vice President and General Counsel.
Following our prepared remarks, we'll open the call to questions. But first, I'd like to remind everyone that we may make statements on the call today that could be construed as forward-looking statements as defined by the SEC. Future results are subject to numerous contingencies, many of which are outside of our control. And any forward-looking statements we make are qualified by the risk factors and other information set forth in our Form 10-K for the year ended December 31, 2013.
In addition, during the call, we will be discussing Buckeye's adjusted EBITDA and certain other non-GAAP measures. Reconciliation of these non-GAAP measures to the most directly comparable GAAP measures is included in the press release that we issued earlier this morning, as well as our October 9 press release announcing the Hess transaction, both of which are posted on the Investor Center section of Buckeye's website, www.buckeye.com
With that, I'd like to turn the call over to our President and CEO, Clark Smith.
All right. Thank you, Kevin, and good morning, everyone. We are pleased with Buckeye's strong results we reported this morning and I look forward to discussing with you some of the key highlights of the first quarter.
First, I would like to emphasize Buckeye's continuing commitment to safety and operational excellence. Safety is the highest priority of Buckeye and the safety of our employees and our commitment to continue safe operations of our assets is a core value. An example of that commitment to operational excellence is our Roanoke terminal team who recently celebrated 50 years without an OSHA recordable.
Let me now shift to talk about our quarter. Buckeye's EBITDA increased to 188.6 million, up 18% year over year. This record level was driven by impressive results from the Hess acquisition and our growth capital investments.
As you know, one of our most important objectives in the first quarter was to advance the integration and commercialization of the newly acquired Hess assets. This is a first full quarter of contribution from acquisition of 20 petroleum product terminals from Hess that we closed on in December of last year. I'm pleased to report these assets generated strong financial results that exceeded our acquisition expectations for the quarter.
We continue to believe that we will achieve an adjusted EBITDA multiple of approximately eight times on this acquisition in 2015.
I'll also like to share with you some highlights from the operation and integration of Hess assets. Integration of a large network of terminals include many activities such as ensuring operating and administrative systems are in place to allow the seamless flow of data between all of our assets, scheduling systems must beyond the single platform, accounting systems must be able to share data, procurement processes are standardized, and many other systems and processes must be individually assessed and modified. But just as important as the integration work is the overlay of Buckeye culture of entrepreneurship and employee empowerment. This culture has been the key to Buckeye's success, and I believe why we have been so successful growing through acquisitions.
Turning to our organic projects, Buckeye continues to make significant growth capital investments across our system. We've reached the major milestone on new Perth Amboy terminal transformation project within the past few days. We began operation of our new six mile high capacity pipeline connection between the Perth Amboy Terminal at our Linden hub. This pipeline provides our customers with what we believe is best option for connectivity to the market compared to the other New York Harbor terminals. Linden is the origination point for our Eastern product system that delivers to markets in West Pennsylvania, upstate New York, New York City and points in between.
Our customers now enjoy a parallel optionality in reaching numerous markets across our system. We now have over 10 million barrels of New York Harbor storage with ship and barge access to enjoy direct pipeline connection to Buckeye delivery system.
We expect volumes on this new pipeline to continue to ramp up during the second quarter. And I look forward to be able to report on the contribution from this milestone next quarter. Completion of this pipeline also triggers the initiation of a previously enhanced long-term contract with a New York Harbor gasoline blender at our Perth Amboy facility.
The rest of our Perth Amboy transformation project continues to make progress. The truck wrap which initiated operation from the fourth quarter was operational for the full quarter with sales volumes ramped up during the quarter as customer used our facility to supply local markets. We've expanded the products like this facility is capable of handling through upgrades to the terminal manifold and other intra-terminal connectivity.
Work on our crude oil rail facility also continues which will provide our customers with ability to offload crude rail cars, store product, and optionality to deliver that product via ship, barge or pipeline. Following the expected completion of our crude oil rail facility in the third quarter of 2014, we believe Perth Amboy will offer a unique crude oil logistic solution for our customers.
Customer demand has also accelerated the second phase of this rail project as we position the facility to be able to handle heavier crude slates and facilitate export of Canadian sourced crude oil. Given this customer demand, we are adding certain equipment to fast track the completion of new infrastructure to handle the heavy crude oil slates. We also anticipate the possibilities of compliment future exports of Canadian crude oil with potential blending and aggregation services in BORCO. With continuing increase in North American crude oil production in regions that lack suspicious pipeline take away capacity we see rail remaining a critical logistic solution for the foreseeable future.
Moving on Perth Amboy, we continue to invest our Chicago Complex, a premiere multi-product storage and terminal hub in the Midwest and has 6.5 million barrels of petroleum product storage. Our crude oil loading facility which began operations in the fourth quarter of 2013 continued to ramp up during the first quarter. We expect to be operating it at full rates for the second quarter. We have a long-term contract with throughput minimums for crude oil services at this facility.
Our project to expand crude oil storage at the complex by 1.1 million barrels is also progressing on time and on budget. This week we reached the first major milestone. It's the first of three tanks, was placed in service and began generating revenues. We expect the remaining storage tanks to be completed and operational in July of 2014. These tanks are released to a local refiner under a long-term contract and are expected to provide that customer with additional supply optionality.
We have a new growth capital project planned for the second half of the year to increase the refined product storage capabilities of the complex by completing a bi-directional pipeline connection to an under-utilized terminal located just outside of Chicago. This terminal has 600,000 barrels of storage. Adding a bi-directional pipeline connection to this fifth terminal will provide customers with access to additional fungible storage as part of the Chicago complex.
We continue to explore opportunities for additional investments at this unique set of assets and we expect it to be a growth platform for Buckeye for some time.
Other capital investments that are currently underway include expansion of our butane blending capabilities across our system. We continue to evaluate opportunities including at the newly acquired Hess terminals for adding blending and expect to expand to an additional five locations by next blending season, which begins in mid-September. We also have projects to debottleneck pipelines in the Midwest that are currently running at capacity to maximize our ability, to move the price-advantage supply from the Midwestern refineries to market.
In addition, we are continually exploring opportunities to invest in underutilized or underperforming assets to serve the ever changing logistics landscape, both domestically and internationally. In total, Buckeye expects to invest approximately $300 million in growth capital in 2014.
Let me briefly talk about the first quarter highlights for each of the operating segments, starting with our Pipes and Terminals. As I mentioned earlier, we expanded the number of locations where we are able to blend gasoline. So we saw a significant improvement in the contribution from butane blending compared to the year ago quarter.
In addition, we experience increase demand for heating oil due to the cold winter. Heating oil volumes were predictably strong for the quarter, as heating degree days increased approximately 15% over the year ago quarter. However, we also had to deal with the negative effects of inclement weather from this winter storms and their impact on the markets we serve. Inclement weather serves to reduce the demand for gasoline and jet fuel since consumers were not able to drive and planes were unable to fly during these events. Given these offsets, there was no material impact on our results from the colder than normal weather.
Moving to our Global Marine Terminals segment, we continue to experience increasing demand for clean product blending and storage capabilities across our New York harbor and Caribbean installations as we successfully implement our strategy. Prior investment decisions around infrastructure enhancements in both Perth and BORCO combined with the terminal we recently acquired from Hess has positioned us to provide superior and cost efficient sources of supply to various demand centers across the Atlantic coast.
In addition, our commercial and marketing teams continue to facilitate introduction of additional third party customers as we transition these newly acquired terminals to independent third party service.
In addition, we have been very successful in our recontracting efforts in our facilities as we reap the benefits of our previous investment decisions to increase the flexibility of our storage handling and transshipment capability. These efforts have recently culminated with the re-contracting of our largest storage customers at BORCO on a major multi-commodity long-term storage agreement at higher rates.
Despite timing delay, the production from these supply sources coupled with backwardation in various commodity forward curve, we continue to see strong demand for our services from structural players. The flexibility of our core infrastructure enables us to reposition capacity into higher margin operations. To that effect, the strong demand for clean product blending and handling capabilities has accelerated our plans to repurpose existing capacity currently in fuel oil service at BORCO, as well as reintroducing currently out of service capacity in Port Reading. This flexibility combined with the additional installations acquired both in the New York harbor and Caribbean strengthens our ability to increase our market share.
Moving to our Buckeye Services business unit, our Merchant Services segment has expanded its contribution to the Buckeye Enterprise as it leads more storage at the Buckeye terminals, including the newly acquired Hess facility. In particular, our merchant activities ramped up around the Hess assets and we added approximately 300 new customers across the newly acquired terminals. Importantly, the Merchant Services contribution to the Domestic Pipelines & Terminals and Global Marine Terminals segments grew by combined 47% over the year ago quarter. This marketing business continues to be in a Port Catalysts across the Buckeye businesses.
The Development & Logistics segment has steadily grown its earnings and has a strong project backlog. I mentioned last quarter that BDL began operating an Eagle Ford crude oil gathering pipeline. This quarter BDL is awarded a contract to operate a Permian based pipeline system for major petrochemical company. These two important wins have provided us with a footprint in these important shale plays that we will look to use a springboard for further growth.
Turning to Lodi, a process for the sale, the Lodi natural gas storage facility continues. There has been considerable interest today in first round bids or do from interested parties this month. I hope to be able to report further progress on our next call.
I would like to next provide a brief update regarding our ongoing FERC matters as to the complaint filed in September 2012 by four airlines, challenging Buckeye pipelines rates for transporting jet fuel to the three New York City area airports. FERC issued an order in February 2013 setting the complaint for hearing, but put it on hold pending FERC order settlement discussions between the parties facilitated by a FERC-appointed settlement judge.
Last month the FERC's Chief Administrative Law judge issued a procedural order recommending litigation in the complaint proceeding while maintaining the existing settlement process. Buckeye Pipeline Company intends to vigorously defend its jet transportation rates to the New York City area airports. In 2013 deliveries of jet fuel to New York City airports generated approximately $32.5 million of Buckeye pipeline company's revenues. It's important to note the complaint is not directed at Buckeye Pipeline Company's rates for service to other deformations, and it has no impact on the pipeline systems and terminals owned by Buckeye's other operating subsidiaries.
In addition, Buckeye Pipeline Company's October 2012 FERC application seeking authority to charge market based rates for deliveries of refined petroleum products to the New York City area market will also now go forward to litigation. If FERC were to approve the application Buckeye Pipeline Company's rates in New York City market, including the rates of the airports, would not be subject to cost of service challenges on a prospective basis.
In closing, the contribution of the assets we brought from Hess was a largest driver of our record performance from the quarter. Contribution from growth capital investments drove significant improvement in our legacy assets as well.
Looking forward, we anticipate some seasonal weakness in the second quarter. We expect to rebound strongly in the second half of 2014, as we anticipate completely significant growth capital project at Perth Amboy, the Chicago complex, as well the diverse portfolio of investments across Buckeye.
This concludes my remarks. Now, Keith will review our quarterly financial results in more detail after which we will take questions. Keith?
Keith St. Clair
Thank you, Clark, and good morning everyone. I will now provide more detail on our first quarter financial results. Our adjusted EBITDA for the quarter increased 18% to $188.6 million, compared to $160.2 million last year. The contribution from the newly acquired Hess terminals and the contribution on recent completed capital projects were the primary drivers for the increase over the year ago quarter in both pipelines and terminals and Global Marine Terminals segments. These two segments combined comprised approximately 96% of our adjusted EBITDA and together improved by almost $30 million or 20% from the year ago quarter. I will provide additional color regarding the segment results in a moment.
Overall, we reported income from continuing operations of $101.5 million for the first quarter of 2014, compared to $94.8 million in 2013. This increase was largely related to the contribution from the terminals acquired from Hess and partially offset by the increase in interest and depreciation expense.
Interest expense increased by $11 million, primarily related to long-term debt issuances in 2013, including the debt issued in the fourth quarter of 2013 to partially fund the Hess transaction.
Depreciation and amortization expense increased $7.3 million due largely to the assets acquired from Hess.
Income from continuing operations attributable to Buckeye's unitholders was $0.87 per diluted unit for the first quarter of 2014, compared to $0.90 per diluted unit for the first quarter of 2013. The diluted weighted average units outstanding for the first quarter of '14 was 115.8 million units compared to 103.6 million in the first quarter of '13. This increase in units was a primarily the result of our 8.6 million unit offering in October of 2013 in conjunction with the announcement of the Hess transaction and the approximate 1.2 million units issued under our ATM equity program in 2013 and the first quarter of 2014.
Consolidated revenues for the quarter totaled $2 billion compared with $1.3 billion in the prior year. The increase in revenues is attributable to an increase in sales volume in our merchant services segment as they supplied markets served by the marine terminals acquired from Hess.
Operating expenses increased to $124.8 million from $92.4 million in the year ago quarter. This increase in operating expenses was primarily due to the result of incremental operating costs related to the acquisition of the 20 terminals from Hess and a more normalized level of maintenance and integrity expense in the first quarter of 2014 across our legacy assets.
General and administrative expenses increased $1.1 million to $17.4 million for the first quarter 2014 compared to $16.3 million last year. This increase was a result of higher legal expenses in 2014 related the ongoing FERC matters and higher compensation expense as a result of headcount additions required to support our growth.
Now I'd like review in more detail the contribution of each segment to adjusted EBITDA, our primary measure of financial performance. Adjusted EBITDA for our Pipelines and Terminals segment was $126.7 million for the first quarter of '14 compared to $115.4 million last year. The 17 terminals acquired from Hess that are reported in this segment were the largest contributors to this increase.
Other contributors to this segment's performance in the first quarter were tariff increases put in place in mid 2013 and in March of 2014, and the contribution from completed capital projects including the crude oil rail offloading facility in the Chicago complex combined with expansion of our butane blending capabilities. Partially offsetting these benefits were increased operating expenses on our legacy assets.
Aggregate pipeline volumes across our system were flat quarter-over-quarter. As Clark mentioned, the cold weather and resulting heating oil demand were the primary drivers for the 10% increase in middle distillate volumes, while inclement weather was a contributor to declines of 4% and 5% in gasoline and jet fuels volumes respectively. Volumes were also challenged by some turnaround activities at a number of refineries that supply our systems particularly in the Midwest.
Pipeline average tariffs increased approximately 5% during the quarter as we benefited from the May, 2013 and March, 2014 tariff increases on our market based systems and the July, 2013 tariff increases on our FERC index systems.
Domestic terminal volumes increased approximately 18% to over $1.1 million barrels per day in the first quarter of 2014, up from 954,000 barrels per day in the first quarter of 2013. This increase was primarily related to the throughput volumes that the terminals acquisition from Hess. Excluding the Hess volumes, throughput volumes were up approximately 1% on our legacy terminals. Advantaged pricing of Gulf Coast refined products drove additional throughput at our Chicago complex which is a gateway for this product moving into the Mid-Western markets.
The pipeline and terminals segment also enjoyed an increased contribution from butane blending during the quarter. As Clark mentioned, we added new blending capabilities during the quarter which drove an increased contribution. In addition, continued strong butane blending margins more than offset a slight decline in blending opportunities at legacy sites due to the decline in gasoline volumes into which butane is blended.
Expenses increased during the quarter as a result of the incremental costs of the acquired terminals. On our legacy terminals, we saw an increase in operating expenses due to a more normalized spread of 2014 project maintenance activities throughout the year. You may recall that related maintenance and integrity spending in 2013 was heavily skewed into the back half of the year. Our maintenance and operating have made a concerted effort to initiate projects earlier this year and we expect a more ratable spending trend as a result.
Now turning to our Global Marine Terminal segment, we recorded adjusted EBITDA of $53.7 million in the first quarter of 2014 compared to $35.5 million in the comparable quarter last year. As you would expect, this improvement is largely the result of the contribution from St. Lucia, Port Reading and Raritan Bay terminals acquired from Hess. In addition, throughput at Perth Amboy was stronger as a result of activity at the truck rack which began operations in the fourth quarter of 2013 and increased customer activity at our Yabucoa terminal.
Despite ongoing maintenance activity storage throughput and ancillary revenues were down only $600,000 over the prior year quarter as lost revenues from out of service tankage was offset by increased revenue related to crude oil storage expansion capacity and lease tankage recently converted to VGO storage.
Operating expenses for this segment increased in the first quarter of 2014 due primarily to incremental expenses associated with the terminals acquired from Hess.
Our Merchant Services segment reported adjusted EBITDA of $3.1 million for the first quarter of 2014 compared to $6.2 million for the comparable quarter of 2013. The year ago quarter benefited from the spike in value of rents and we are pleased with the overall results the segment was able to achieve while battling the negative impact of backwardated pricing during the quarter particularly in our fuel oil supply and distribution business.
Revenues in this segment increased by 56% to $1.7 billion from $1.1 billion in the year ago quarter. As product volume increased 59% to 569 million gallons compared with 358 million gallons in the first quarter of 2013. This increase in revenue is a result of increased activities to support the domestic terminals acquired from Hess as well as increase in volumes in our fuel oil supply business.
The overall contribution from this segment to the Buckeye umbrella totaled $10.3 million for the quarter, up 47% from the contribution in the year ago quarter. This increase is a result of additional activity around supplying the terminals acquired from Hess as well storage leased to Yabucoa for the Caribbean fuel oil supply business and at St. Lucia as merchant services provide feedstock to a local utility for electricity generation.
Wrapping the segment review, our Development and Logistics segment generated $5.1 million of adjusted EBITDA compared to $3.2 million last year. This segment continued to benefit from the increased contribution from the LPG storage facilities and a strong backlog of projects contributing to higher utilization rates for its personnel.
Now looking at the loss from discontinued operations, our natural gas storage facility incurred a loss of $10 million compared to a loss of $4.3 million in the comparable year ago quarter. Lodi experienced extreme price volatility when taking certain measures to insure that we met deliverability requirements of our customers during than normal winter.
Looking at our liquidity, we ended the quarter with $31 million in cash and long-term of $3.2 billion including long-term borrowings under our credit facility of $170 million. We also had $348 million borrowed under our credit that would have reflected as short-term debt as this supports the working capital requirements of our merchant services segment.
At the end of the quarter, our leverage ratio of long-term debt to LTM adjusted EBITDA as calculated in accordance with our credit facility was approximately 4.5 times. The increase in our leverage is a result of capital spending for projects for which we have not yet benefited from the resulting cash flows as well as the underperformance of our natural gas storage business which is reflected as discontinued operations. Although excluded from our calculation of adjusted EBITDA due to our intention to sell the Lodi business, the results of this business are included in our leverage calculation until sold.
Maintenance capital for the quarter was $18.6 million or an increase of approximately $13.5 million compared to the first quarter of 2013. This increase in maintenance capital in the current quarter is primarily timing related as we experienced delays in starting projects in the first half of 2013. During the quarter, we also spent approximately $91 million on return capital projects.
Looking forward, we expect to spend $70 million to $90 million on maintenance capital in 2014 with the increase due to the spending required on the terminals acquired from Hess. Spending on our legacy assets is expected to be largely inline with 2013 spending. We also expect to spend $300 million to $330 million on growth capital projects on a consolidated basis in 2014.
Our distribution coverage ratio based on distributions declared on units outstanding at the end of the quarter was 1.03 times. Due to some of the seasonal and other items Clark mentioned earlier, we do expect coverage to fall below 1 for the second quarter but are highly confident that full year coverage will be above 1 times.
In closing, although our transition efforts continue we're seeing the benefit of the Hess transaction which is driving significant period-over-period growth. We are also achieving key milestone on our Perth Amboy transformation project and believe we have a strong backlog of growth capital projects. So we expect to drive continued growth in 2014 and beyond.
That concludes my remarks. And now, we'll open the call for questions.
And our first question comes from Steve Sherowski from Goldman Sachs. Your line is open.
Steve Sherowski - Goldman Sachs
I was just wondering if you could comment on the recent customs ruling that allows for products to be transshipped over BORCO on non-Jones Act vessels. I was just wondering is there any blending required for these products to qualify for this ruling? And does it also include crude?
Yes. This is Khalid Muslih. I will take that question. So this did receive a ruling from U.S. Customs and Border Protection here recently that allows certain gasoline blending components to leave United States on a foreign-flagged vessel for transport to our BORCO facility. Specifically, getting to answer your question, it's very much specific to -- certain gasoline blending components. Effectively the product must be blended into finished gasoline, which is basically a new and different product. Then that finished gasoline can then be transported back to the U.S. on a foreign-flagged vessel. The ruling is very much consistent with Customs' precedent in previous rulings that they have issued over the last 25 years.
Steve Sherowski - Goldman Sachs.
Okay. So crude would not qualify?
That is correct. It's very much specific to the blending of gasoline components and transforming those into finished gasoline.
Steve Sherowski - Goldman Sachs.
Okay. Thank you. And just a quick follow up. I was just wondering, best guess, what was the volume impact from inclement weather and refinery turnarounds on pipeline throughput?
It's very difficult to assess. It's Bob Malecky, it's difficult to assess with any precision, probably in the range of 2%.
Steve Sherowski - Goldman Sachs.
2%. Okay. Great. That's it for me. Thank you.
Thank you. (Operator Instructions).
And our next question comes from Gabe Moreen from Bank of America Merrill Lynch. Your line is open.
Gabe Moreen - Bank of America Merrill Lynch
I was just curious in terms of the comments around refined products pipeline expansions in the Midwest, clearly there is one or two other competing projects. I'm just wondering where you think the products would need to go? What the size of that expansion would potentially be? I know that's customer demand dependent, but I guess what you're thinking about and then timing on that that sort of expansion?
Gabe, again this is Bob Malecky. We are hearing a lot of drive to move from west to east with a lot of product with so many expansion with some of the refineries. We are working on various alternatives to enable that transition across. I think it probably has a 12-month to 18-month gestation period to come into at service.
Gabe Moreen - Bank of America Merrill Lynch
And is that something where you see --
So many other things we're doing Gabe really around minor capital spend that could debottleneck some of the system. So we could capture some incremental value by making some changes around how we're actually operating some of the systems.
Gabe Moreen - Bank of America Merrill Lynch
And to follow-up on Bob's answer, if the 12-month to 18-month project, is that something where you'd be looking at looping your line and going to facility or are you looking to go further north to Perth Amboy? I mean I'm just curious in terms of what that would mean and that would seem to be a pretty sizable project if it happens?
Yes. I think we are focused in the Midwest in some of the infrastructure you get from some of the Central Midwest, refining infrastructure further east would not all the way to the East Coast though. Intra Midwest pad two activity.
Gabe Moreen - Bank of America Merrill Lynch
Got it. Thanks. I'm curious you mentioned the weather. I don't think really net impacted you much, but clearly there's been a lot of rail congestion both in and out of Chicago. I guess I'm curious whether that's had impact at all? And also, clearly the price of ethanol has been incredibly high here. I'm just wondering if that had an impact on your business or will have an impact or at all?
Yes. We don't really see ethanol pricing having a significant impact on our business. On the periphery it certainly impacts gasoline demand. The weather did have some impact on our rail transportation, specifically in some of our crude oil activities, in the Midwest we launched, as Clark, mentioned a crude rail loading activity in the Chicago complex right in the heart of all that and the rail congestion did slow the initiation of that project. But I think we're starting to see some of that clear out and certainly in the most recent months we had very much normal volumetric activity in Chicago area.
Thank you. (Operator Instructions).
And I'm showing no further questions from our phone line. I now like to turn the call back over to Clark Smith for any further remarks.
Thank you, Crystal, and thank you everyone for your time today and your interest in Buckeye Partners. We look forward to updating you further on our next call. Enjoy the weekend.
Ladies and gentlemen, thank you for participating in today's conference. This does conclude your program. You may all disconnect. Everyone have a wonderful day.
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